5 Pitfalls to Avoid When Buying Real Estate in Spain

Buying property in Spain attracts many foreigners, who are looking for a pleasant climate, a sunny lifestyle, and more affordable prices than in their home countries. However, as with any foreign market, purchasing real estate in Spain has specificities that you need to be aware of to avoid unpleasant surprises.

Here are the 5 main pitfalls to avoid when buying property in Spain, along with practical advice to secure your project and invest with confidence.

1. Not verifying the legal status of the property

One of the first pitfalls concerns the legal aspect of the property. It is not uncommon in Spain to come across properties that are not in compliance, especially in rural or older areas.

  • Make sure the property is properly registered in the Land Registry.
  • Check for the absence of mortgages, debts, or urban planning restrictions.
  • Request the “nota simple”, an official Spanish document summarizing the legal details of the property.

Failing to carry out this verification can lead to buying a property with hidden debts or even illegal status, with risks of demolition or significant fines.

2. Underestimating the purchase costs

The listed price does not always reflect the real cost of your purchase. In Spain, additional fees can amount to between 10% and 13% of the property price.

These fees include:

  • Notary and registration fees
  • Transfer taxes (ITP) or VAT (for new properties)
  • Agency fees (sometimes charged to the buyer)
  • Possible legal fees (lawyer, translator, etc.)

Tip: Plan a full budget before committing to avoid financial surprises at the end of the process.

3. Not hiring an independent professional

In Spain, real estate agents are not always regulated as they are in other countries. Anyone can work in the profession, which increases the risk of mistakes or abuses.

Do not rely solely on the agency selling the property: their goal is to close the sale, not necessarily to protect you.

It is strongly recommended to:

  • Hire an independent real estate lawyer (“abogado”) who will check all legal documents.
  • Work with a competent notary, although their role is more limited than in some countries.
  • Have all documents translated if you do not fully understand Spanish.

This represents an additional cost but is an essential safety guarantee when buying abroad.

4. Forgetting condominium or urban planning rules

Before buying, thoroughly check the rules applying to the property:

  • Are there any restrictions in the homeowners’ association (condominium)?
  • Are any works planned? What are the monthly fees?
  • Can the property be rented as a holiday rental? Some regions require specific tourist licenses.
  • Are the pool, garden, garage properly included in the property title?

Overlooking these points can prevent you from making a profit or generate unexpected long-term costs.

5. Signing a preliminary contract without necessary guarantees

The Spanish preliminary sales contract (“contrato de arras”) is a strong commitment: if you withdraw without justification, you lose the deposit (often 10% of the price).

Before signing anything:

  • Check all legal documents (habitation license, urban planning, etc.).
  • Make sure the seller is the legal owner.
  • Include a suspensive clause if you need financing.

A lawyer can also help you draft a balanced contract that protects your interests.

Practical advice for a successful property purchase in Spain

In addition to avoiding these five common pitfalls, here are some recommendations to secure your investment:

  • Obtain your NIE (Foreigner Identification Number) before any procedure.
  • Open a Spanish bank account to facilitate transfers and local payments.
  • Learn about the cadastre and local taxes (IBI, garbage tax, etc.).
  • Visit several properties and areas, and avoid rushing your decision.
  • Prepare an investment strategy if you plan to rent: short-term, long-term, seasonal?

Conclusion: Secure your real estate project in Spain

Buying property in Spain can be an excellent opportunity, whether for a second home, a rental investment, or long-term relocation. But to succeed, it is essential to be well advised and avoid common mistakes.

Don’t let a dream of sunshine turn into an administrative or legal nightmare. Take your time, get informed, and be supported by competent professionals.

Our agency supports you every step of the way in your property purchase in Spain to secure your investment and find the ideal property, at the right price and without stress.